The Witkoff Group officially launched sales at 10 Madison Square West less than two weeks ago (unofficially, less than a month ago), and now the Journal reports that contracts have already been signed on nearly 60 percent of the units. For those that have been paying any attention at all to the craziness that is the luxury market in this city, this is no surprise. Steven Witkoff bought the former office building in 2011, and back then, he was expecting to sell units for $1,800 per square foot. Today, the units are averaging $2,800 per square foot.
At 150 Charles Street, another under-construction project by the Witkoff Group, all 91 condos have found buyers willing to pay more than $3,000 per square foot, and that building is barely a steel frame. In unfinished towers like One57 and 432 Park Avenue, super high-end units are selling for well over $5,000 per square foot. These ultra luxe projects have pushed up the cost of land, making it harder and less profitable to develop commercial buildings, rentals, or middle-of-the-road condos. But why is there such a demand for multi-million dollar condos in the first place? "Real-estate professionals credit a rising number of wealthy people in the city and a growing roster of foreign investors who view New York apartments as safe investments long-term," writes the Journal, "though even some condo developers say they don't fully understand the surge in demand." Oh. Okay then.
· In Manhattan, High-End Condo Sales Surging [WSJ]
· 10 Madison Square West coverage [Curbed]